The UAE and Saudi Arabia are developing alternative trade routes to reduce dependence on the Strait of Hormuz. It is aimed at protecting supply chains and energy flows amid rising geopolitical tensions and disruption risks in the region. What was once a worst-case planning exercise is now the lived reality for Gulf traders, importers, and logistics planners.
The UAE and Saudi Arabia are planning to bypass the Strait of Hormuz amid the ongoing conflict. Saudi Ports Authority, also known as Mawani, and the Sharjah logistics firm Gulftainer are working together on the project.
Under the partnership, there will be direct connectivity between Sharjah and Dammam, a city in eastern Saudi Arabia. It involves sea and land transport to improve “cargo flow efficiency and reduce transit time”, Mawani said in a post on X.
“By leveraging Khorfakkan Inland Corridor – Khorfakkan Commercial Terminal, Sajaa Dry Port, and integrated inland and land-sea corridors, we enable direct, reliable transport linking the UAE to key Saudi market, Dammam,” Gulftainer said in a post on LinkedIn.
It involves integration of ports from the two countries, including Khorfakkan Commercial Terminal on the east coast of the UAE. It bypasses the Strait of Hormuz and inland logistics hubs such as Sajaa dry port in Sharjah.
On Monday (March 23, 2026), Iran threatened to lay sea mines across the Gulf if its southern coast and islands are attacked by the US and Israel. US President Donald Trump also said military strikes on Iran's energy infrastructure have been postponed for five days following talks with Tehran.
The Strait of Hormuz is important for Gulf countries as most of their goods and oil pass through it. It supports their economic growth. A stretch of water barely 32km wide at its narrowest point can send ripples through the entire world economy. The new corridor is expected to improve market access for both countries.
Energy remains the foundation of the Gulf’s global economic role. It is not known what kind of goods will be transported between Dammam and Sharjah, or the total volumes. The new corridor is significant as the Strait of Hormuz remains effectively closed for shipping traffic as Iran attacks vessels transiting through the vital waterway between Iran and Oman.
Will the new corridor support efficient global trade? Analysts are closely watching the developments in this regard.